ZeroHedge: When with Geithner recuse himself from Fed Audit Deliberations?

[Ruby the Liberal]

In today's ABC Top Line, Alan noted, “when Tim Geithner says that he doesn't want to see the Fed audited, what he's really saying is he doesn't want to see Tim Geithner audited,” Grayson said. “He was the head of the New York Fed for years and years. This audit would apply to him. And the actions he took -- which he can now take in secret and, when this bill passes, will no longer be secret -- we'll be able to see and understand the decisions that he made that among other things put huge amounts of bailout money into the hands of private interests.” Grayson added: “It's one of the biggest conflicts of interest I've ever seen.

SNIP

“The Fed doesn't want to be audited. Who does? Do you want to be audited? I don't want to be audited, but sometimes it's necessary,” he said. “When you're handing out a trillion dollars at a time -- a trillion dollars at a time, which works out to $3,000 for every man woman and child in this country -- don't we have a right to know what happened to it?”

Grayson added: “It's central to the bill. We've had secret bailouts from the Fed to private interests now for the past two years without any exposure whatsoever. … We need to know what happened to our money, because when the Fed hands out our money, every dollar in your pocket, every dollar in your checking account, every dollar in your 401(k) becomes that much cheaper and less in value.”

In retrospect it is really much simpler: the Fed will only retain its secrecy as long as it can keep pushing the market higher, and as long as it can force the middle class to empty out their money markets and throw their money into bankrupt retailers trading at one million P/E. Once the market tumbles, it is game over. The Fed knows it, the president knows it, and Geithner certainly knows it. Which is why we expect massive resistance by the Fed and all the "liquidty providers" and "market makers" to allowing the Ponzi formerly known as the market, to reach its true fair value (absent from endless fiscal stimuli and ZIRP insanity)... somewhere in the 400-500 S&P range.

http://bit.ly/aERXIT

[LakeSamish706]

1. And when is the White House going to step away from trying to block this bill? n/t

[Ruby the Liberal]

2. His last paragraph is the first explanation-attempt I have seen that may describe their motivation.

[yourout]

3. When Porky grows wings and an afterburner.